Supply%20Chain%20Management%20to%20optimise%20the%20Digital%20Value%20Chain

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Supply Chain Management to optimise the Digital
Value Chain
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• Within the scope of the TEDIP-Survey and
• on the basis of digital libraries!

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• Diploma thesis
• Elisabeth Bergner

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Content

• 1.1 Definition of the Network Economy
• 1.2 Value Chain
• 1.3 Digital Value Chain
• 1.4 Definition of the digital Supply Chain
• 1.5 E-Supply Chain Management
• 2 Digital library
• 2.1 The Value Chain of the digital library
• 2.2 Services offered by the digital library
• 2.3 Models of service provision
• 2.4 Charging service provision
• 2.5 Cost Model for the digital library

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Starting position

• A digital library decide on opening a new
  business segment, namely to assemble and to
  distribute knowledge objects in the context of
  customised scheduled multi-media based documents
  on certain topics.
• The aim of the presentation is to get an idea of
  what is meant by digital supply chain in this
  context.

1.1 Definition of the Network Economy
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Network Economy

• What investigates TEDIP?
• Economic mechanism of action of the digital
  economy that is the digital supply chain. In
  order to form the basis of E-Business and
  E-Commerce.
• What is the point?
• Focus on digital knowledge objects and their
  relating effects.

1.1 Definition of the Network Economy
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Value Chain

• The value chain represents the value activity of
  the enterprise.
• The value chain analyses the potential for cost
  reduction and differentation.
• The value chain is different for each enterprise.
• There is a relation to the ressourced based view.

1.2 Value Chain
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Optimisation of planning and controlling.
Service provision
SALE
Service provision
SALE
Procurement
Procurement
Trans-sectoral planning and controlling.
Service provision
SALE
Service provision
SALE
Procurement
Procurement
Trans-organisational planning and controlling.
Service provision
SALE
Service provision
SALE
Procurement
Procurement
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Digital Value Chain

• The information of the physical value chain are
  prepared and are available by the
  information-system.
• Single physical processes of the value chain are
  sustained through digital value chain processes.
• Additional values are generate the basis of
  digital value chain processes.
• New business models and services are generated in
  the digital value chain.

1.3 Digital Value Chain
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Critisism of the value chain

• It is difficult to distinguish between the
  different value activities of the value chain.
• The restriction of the generic strategies
• Structur-Behaviour-Result Paradigma
• Inside-out und outside-in
• Dynamic of the market or solid structur of the
  market

1.2 Value Chain
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SCM

• Definition of Supply Chain Management
• Value Chain Management
• Management of a Value-Network

1.4 E-Supply Chain Management
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Service provision
Digital Library
Assemle Knowledge Objects
supplier
Customer
publishers
University Publishers
Supplier of the supplier
author
Students Readers
Ultimate customer
Informations-, Information, Service and Payment
Flow
Quelle A.T.Kearney, 1994.
1.4 Definition of the digital Supply Chain/ 2
Digital Library
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Optimisation through supply chainmanagement (SCM)

• Optimisation through the introduction of Value
  Chains in an enterprise
• Optimisation through enhancement of present Value
  Chains

1.5 E-Supply Chain Management
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Process Optimisation

• Building material and information flows between
  the enterprises of a Value Chain is a good
  starting point for the optimisation and survey.
• Process optimisation leads through lower costs or
  enhanced service provision of the chain.
• Costreduction is the consequence of optimizing
  other categories Quality, Marketing,
  Collaboration, Scheduling and Controlling.
• Introducing Information Technologie for example,
  ECR (Efficient Consumer Response) makes it
  possible to reduce cycle time through the whole
  value chain.

1.5 E-Supply Chain Management
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Supply Networks

• Virtual Network
• Collaboration
• Core competence (Outsourcing)
• Interorganisational systems for digital Supply
  Chain Collaboration
• Distinction to the value chain
• Transaction still mainly occur between two
  partners at one time

1.5 E-Supply Chain Management
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Global Information Network
Electronic Advertising
MARKET Research
Electronic Ordering
Electronic Markets
Electronic Payments
Information Services
Electronic Communication

• Suppliers
• Sales/Order Proc
• Inventory Mgmt.
• Service Planning
• Distribution Mgmt.
• Payment Systems
• Database Systems
• Transaction
• Network Interface

Service -Sales/Order Proc. -Inventory
Mgmt -Service Plan -Distribution Mgmt -Payment
Service -Database Systems -Transaction --Network
Interface
Distributers -Sales /Order Proc. -Inventory
Mgmt. -Service Plan -Purchasing -Distribution
Mgmt. -Payment Systems -Database
Systems -Transaction -Network Interface
Customers (Readers, Journals)
Supply Chain Database Demand Forecast Sales
Data Inventory Data Service Data Distribution Data
Customer Service Database Order Status Data
SUPPLY CHAIN NETWORK
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Trans-organisational planning and controlling of
a virtual library
Library II
Library I
Library III
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Trans-organisational planning and controlling of
a virtual library
Library II
Library I
Library III
E-Supply Chain Management
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Trans-organisational planning of a virtual
library
Library III
Library I
Publisher
Publisher



E-Supply Chain Management
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Value Chain

• Shorten inherent waiting time in the system no
  bundling of publications
• Single copy for specific target group
• IT influences VC.

2.1 The Value Chain of the digital library
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Services of the digital library

• Resourcing
• Digitale books and journals
• Metadata
• Search and Profilservices
• Digital service
• Interlending
• Konvertation
• Print orders

2.2 Services offered by the digital library
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Service Models

• Activ supply
• Passive supply
• Activ collection

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Cost models for the digital library

• Single subscription
• Licences for user groups
• Costs per demand
• Costs per accomplishment
• Costs per document
• Costs per supply
• Costs per time (for non discret services)

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Process-Cost-Management

• Where use Activity Based Costing?
• Activity based Budgeting
• Activity based Performance Measurement
• Activity based calculating
• The aim is to calculate the product price? Target
  Costing

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Value Chain - Survey

• The value chain is very important for the cost
  management.
• The three elements of the survey are
• Strategical position
• Analysis the cost drivers
• Analysis the value chain

1.2 Value Chain
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Charging Service

• known Users
• anonymous Users
• Cooperation among digital libraries

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Supply Chain Collaboration
Costs and Benefists
Performance Measures
Results
System Implemenation and Integration Cost
Total Cost of Ownership of System
Process Coordination and Integration Cost
Net Benefit Of SCM
Data Translation and Intgeration Cost
Partnership Instability Cost
Partnership Opportunity Cost
Switching Cost
Cycle Time Reduction
Supply Chain Cost Reduction
Process Cost Reduction
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• With TCO (Total Cost of Ownership) and
• the Interorganisational Cost Management (IOCM)
  are two areas that cover the Supply Chain
  Costing. It is important is to divide the
  determination for costs in the following three
  parts.
• Direct costs
• Costs of the proceedings
• Transaction costs
• Through this division you are able to come up to
  the requirements of the value chain.

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Costs levels of the value chain
ENTERPRISE 1
ENTERPRISE 2
TRANSACTION COSTS
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Transaction costs

• The starting point of the critisim is cost
  accounting, that is not able to represent costs
  thereby incurred outside the service provision.
• Transactions costs of procurement and sale
• cost accounting could be extended by transaction
  costs and collaboration costs.
• Transactions costs can only be limited connected
  with present financial instruments.
• Criticism Devision into direct and indirect
  costs!

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Assignability of transaction costs

• Nevertheless of critisism there are starting
  points to introduce transaction costs due to the
  following reasons
• Align transaction costs with the value chain
• Strategic position is possible
• Structural cost drivers can be integrated
• Customers are the starting point.

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Process costs within the value chain

• SCOR Model for the VC (Top Down)
• Activity based Costing is bottom up
• Begin with the level of the costs centers and
  analyse these activities. Then comprimise them to
  processes.
• Standardised process definition in the enterprise
  has the advantage, that due to process
  description and the relating cost data of an
  enterprise, these cost data and process
  description could be compared.
• Different indirect costs.

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Distribution
Distribution
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Literature/ URL

• http//silmaril.smeal.psu.edu/misc/supply_chain_in
  tro.html 13-01-2003.
• http//www.otp.org Abruf 7.12.2002
• http//www.mastercard.com/set
• http//www.graphics.uni-bonn.de/dfgspp.v3d2
• Abruf 5.12.2002
• http//www.milicent.digital.com
• Abruf 4.12.2002
• http//www.hrl.il.ibm.com/mpay
• Abruf 3.12.2002
• http//www.digicash.com
• Abruf 2.12.2002
• http//www.cybercash.de
• Abruf 2.12.2002
• http//elektra.informatik.tu-muenchen.de
• Abruf 1.12.2003

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Literature/ URL

• http//medoc.informatik.tu-muenchen.de
• http//www.global-info.org
• http//link.springer.de
• http//opera.iiie.org
• http//ist.unibw-muenchen.de/Lectures/WT2002/DigiB
  ib/Frank/PraesentationDigitaleBibliotheken.pdf
• http//www.dlib.org/dlib/december02/soergel/12soer
  gel.html
• http//www.cni.org/regconfs/1997/ukoln-content/rep
  or24.html
• http//www.firstmonday.org/issues/issue7_5/lynch/i
  ndex.html
• http//www.fiz-karlsruhe.de/pressroom/getinfoe02.h
  tml
• http//www.bl.uk/services/publications.html

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Literature/ URL
Andersen http//www.business.auc.dk/evolution/esap
apers/welcome.html McLaren et.al. Supply Chain
collaboration alternatives.S349. http//www.emeral
dinsight.com/1066-2243.htm
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literature/ TEDIP Report

• Keszi,RMakó,C Outsourcing as An Indicator of
  Regional Competitiveness in the E-Economy. A
  Methodological Attempt to Analyse 18-Countries
  Data of EMERGENCE Project

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• H.BullingerOptimierung der Abläufe, inZWF
  Jahrg.97,(2002)
• Boutellier, R.,Locker,A.Beschaffungslogistik
  mit praxiserprobten Konzepten zum Erfolg,
  München-Wien, Hanser, 1998.
• The third ACM Conference on Digital Libraries,
  Pittsburgh, 1998.
• Horvàth und Partner(Hrsg.) Qualitätscontrolling/E
  in Leitfaden zur betrieblichen Navigation auf dem
  Weg zum Total Quality Management, Stuttgart,
  1997.
• Wildemann, H.,Supply Chain Management und
  E-Technologien in Reihe BWL aktuell,
  Klagenfurt,2001.
• Ziegenbein,K.Controlling in Kompendium der
  praktischen Betriebswirtschaft, Hrsg. Olfert,
  K., Leipzig, 2002.

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Literature /periodicals

• Houlihan, J.International Supply Chain
  Management in International Journal of Physical
  Distribution and Logistics Management, Vol.15,
  No.1, p.22-38, 1985.
• Jones,T.and Reilly,D. Using Inventory for
  Competitive Advantage through Supply Chain
  Management in International Journal of Physical
  Distribution and Lgoistics Management, Vol. 15,
  No.5, p.16-22, 1985.
• in ZWF Jahrg.95(2000)7-8, Prozessoptimierung,
  S.349.
• McLaren, Head et.alSupply Chain collaboratives
  understanding the expected costs and benefits.
• http//www.emeraldinsight.com/1066-2243.htm
• Abruf 10.12.2002